KPMG Australia will cut 5% of its workforce, including 27 partners and about 360 employees, after a whistleblower scandal over confidential client data and a stretch of weak market conditions pushed the firm into another round of damage control. The accounting giant said the cuts come as it faces lower consulting revenue, continued economic weakness and pressure from allegations that senior partners accessed confidential client material to win new business.
Who Pays for the Mess
The people at the bottom are the first to take the hit. KPMG Australia chief executive John Sams said the firm expects difficult market conditions to continue in FY27 and beyond, with economic growth likely to stay subdued until at least 2028. That means slower client investment, longer decision-making timeframes and, now, fewer jobs. Sams said the cuts were made "in response to continued economic weakness, difficult market conditions and the impact of the firm's conduct and whistleblower matters." He added, "This is not a decision that has been taken lightly, and we know it will have a very real impact on people."
Most of the roles affected will be in consulting, while changes to the business and the professional services landscape have also reduced the need for some roles in business services. The firm said it will restructure so that its mid-market and private deals team joins deal advisory and infrastructure, while its advisory team joins consulting. That shuffle of boxes and titles is being sold as alignment with KPMG Australia’s global advisory services. For the workers whose jobs disappear, it looks a lot more like the usual corporate ritual: protect the brand, trim the payroll, keep the machine moving.
The Leak, the Cover-Up, the Fallout
The job cuts come after a whistleblower revealed that some of KPMG's most senior partners had accessed confidential client data to win new business. The firm has been under pressure since allegations emerged that confidential board papers from Lendlease were used to support bids for major audit tenders for Westpac and Dexus, and that the firm mishandled the whistleblower's complaint. KPMG said internal and external reviews into the whistleblower allegations will be completed in the coming months, and that the findings will inform the next phase of its action plan.
Sams said, "We also recognise the challenges created by our own failings, and the work we must continue to do to rebuild trust." He thanked staff after a "very challenging year," saying they continued to deliver work for more than 13,000 clients while supporting one another through a difficult period for the firm. That’s the language of institutional self-preservation: trust, action plans, future readiness. The workers and clients are left to absorb the damage while the firm tries to talk its way out of the wreckage.
The scandal has already led to departures and sackings. Former chief operating officer Eileen Hoggett was sacked with immediate effect and no retirement payment after law firm Allens uncovered emails confirming printouts of Lendlease documents had been stored in her locker and shared with other staff bidding for new business. Former chairman Martin Sheppard, ex-chief executive Andrew Yates and former audit head Julian McPherson have also left, with multimillion-dollar retirement packages intact. KPMG general counsel Louise Capon and HR boss Dorothy Hisgrove have announced their retirements. Kim Lawry, a former senior audit partner, resigned after Westpac refused to let her sign off on its financial accounts. KPMG is considering disciplinary action after the parliamentary inquiry heard that investigations by Allens uncovered a screenshot on her mobile of Lendlease documents.
What the Firm Calls Stability
KPMG Australia said the cuts were widely expected as it reportedly sought financial support from KPMG International to remain solvent. Its 2026 financial results showed revenue declined slightly to $2.26 billion from $2.28 billion the previous year, with consulting down 17%. Revenue grew in four of five divisions, led by audit and assurance, up 11%, and tax and legal, up 10.9%. The firm said it continued to invest in technology and build its AI capability.
Sams said the firm was "focused on what we can control" and would continue to monitor performance closely, act when needed and consider how the firm needs to be set up for the future. That future, at least for 360 employees and 27 partners, starts with a pink slip. The firm said it had already sacked one partner over the scandal and that no update on the ongoing investigations was provided on Monday.
Sams said, "Several internal and external reviews will be completed in the coming months. Their findings will inform the next phase of our action plan and help ensure we take all necessary action." He added, "We know there is more to do, and we will continue that work with openness, care and determination – focused on supporting our people, serving our clients and building a stronger, more trusted firm for the future."